After Wednesday’s gold and silver price plunges -- no doubt linked to options expiration -- the metals have recovered. Gold was fairly stable over the course of yesterday’s Comex pit-session in New York, up just 0.62%, but silver had a strong session – posting gains of close to 2%. As usual, this coincided with gains in the EURUSD, crude oil, copper, and European equities, in another of those “risk on” days at the market.
The Upper Price Boundary
For over a year now, silver has been confined to a trading channel between roughly $26 and $35.50. It will be very interesting to see how it performs if we approach this upper boundary. We can expect strong resistance from the bears, as any sign that silver is consolidating above this price will act as a strong incentive for speculative money to race in on the long side, chasing the price rapidly higher in the manner we saw during late 2010 and early 2011.
Another day, and yet more ominous news regarding the US dollar’s reserve currency status -- this time courtesy of the IMF, which is said to be considering including the Australian and Canadian dollars in its basket of reserve currencies. This “basket” is partly reflected in the makeup of the IMF’s own unit of account: Special drawing rights (SDRs).
Tangent Capital’s Bob Rice gives some good background info on SDRs in this video. Promoting new currencies to reserve status diminishes the importance afforded to the existing reserve currencies -- the U.S. dollar, British pound, euro, Swiss franc and Japanese yen. As Rice discusses, the big question is what kind of role the Chinese yuan will take on as an SDR component in the years ahead.
To which we and others would add: what role might gold play in the future composition of SDRs?
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Polski
- Português (Portugal)
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Silver Edging Toward Key Resistance
Published 11/30/2012, 11:00 AM
Updated 05/14/2017, 06:45 AM
Silver Edging Toward Key Resistance
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.